Leasing A Car
Leasing a car means that you pay a specific amount for a specific period of time (like renting) and then return the car after that time. Most leases require you to be 18 or older and have a credit history see Credit History & Credit Score (FICO), which is often difficult for a teen to establish. A responsible adult might have to take out the lease and the insurance, and list you as a regular driver. However, you need to reside in the same house or neighborhood as that lessee. One basic guidline for leasing a car is that if you drive more than 12,000 miles per year, you should buy vs. lease a car.
- Good Things: Many dealers require no down payment or only a small one at best. You don’t have to worry about selling the vehicle at the end of the lease—you just give it back. And you can probably lease a more expensive car than you could buy in the regular way. Monthly paymnet are generally lower.
- Bad Things: Leasing is always more expensive than buying, especially if you’re paying cash. Most dealers limit the number of miles you can drive and make you pay steep penalties if you go over your alloted millage. And when you return the car, you’re back to square one.
- Equal: You are responsible for insurance and repairs no matter what.